Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Saving Habit for Retirement and Well-Being: A Qualitative Analysis

Suzie Adee, Evan Lau, Shirly Siew-Ling Wong

http://dx.doi.org/10.6007/IJAREMS/v12-i3/17911

Open access

Emergency savings are widely acknowledged for helping people develop financial resilience against unforeseen circumstances and financial hardship. This study revealed insights into the saving habit of individuals that might improve society's ability to endure financial shocks in the future. Face-to-face interviews were conducted, and open-ended questions were raised for the participants. Quirkos software was selected to analyze the information acquired through the survey interview for this research. Thematic analysis revealed financial security as the most prominent component, followed by financial literacy, which comes second for an individual’s retirement savings and well-being. The findings provide practical implications for allowing relevant policymakers and regulatory bodies to design and develop models for financial freedom, prepare for retirement and improve well-being.

References
Abdul Hamid, T. A. T. (2015). Population aging in Malaysia: A mosaic of issues, challenges and prospects. UPM University Press: Serdang (Malaysia).
Abel, A. B. (1985). Precautionary saving and accidental bequests. The American Economic Review, 75(4), 777-791.
Alessie, R., Lusardi, A., & Kapteync, A. (1999). Saving after retirement: Evidence from three different surveys. Labour Economics, 6(2), 277-310.
Ali, A., Rahman, M. S. A., & Bakar, A. (2013). Financial literacy and satisfaction in Malaysia: A pilot study. International Journal of Trade, Economics and Finance, 4(5), 319-324.
Alsshenqeeti, H. (2014). Interviewing as a data collection method: A critical review. English Linguistics Research, 3(1), 39-45.
Anong, S. T., & DeVaney, S. A. (2010). Determinants of adequate emergency funds including the effects of seeking professional advice and industry affiliation. Family and Consumer Sciences Research Journal, 38(4), 405-419.
Avery, R. B., & Kennickell, A. B. (1991). Household saving in the U.S. Review of Income and Wealth, 37(4), 409-432.
Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191-215.
Banks, J., & Tanner, S. (1999). Patterns in household giving: Evidence from U.K data. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 10, 167-178.
Barrett, G. F., & Kecmanovic, M. (2012). Changes in subjective well-being with retirement: Assessing savings adequacy in Australia. Social and Economic Dimensions of an Aging Population Research Papers, 96.
Basit, T. (2003). Manual or electronic? The role of coding in qualitative data analysis. Educational Research, 45(2), 143-154.
Basit, T. (2003). Manual or electronic? The role of coding in qualitative data analysis. Educational Research, 45(2), 143-154.
Bernheim, B. D., Shleifer, A., & Summers, L., H. (1985). The strategic bequest motive. Journal of Political Economy, 93(6), 1045-1076.
Bosworth, B., Burtless, G., & Sabel- Haus, J. (1991). The decline in saving: Evidence from household surveys. Brookings Paper on Economic Action, 1, 183-241.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101.
Browning, M., & Lusardi, A. (1996). Household saving: Micro theories and micro facts. Journal of Economic Literature, 34(4), 1797-1855.
Bryman, A. (2012). Social research methods. (5th ed.). United Kingdom: Oxford University Press.
Coursolle, K. M., Sweeney, M. M., Raymo, J. M., & Ho, J. H. (2010). The association between retirement and emotional well-being: Does prior work-family conflict matter? The Journals of Gerontology, 65B(5), 609-620.
Credit Counselling and Debt Management Agency. (2018). Helping Malaysian Manage Personal Finances. Annual Report.
Croson, R., & Gneezy, U. (2004). Gender differences in preferences. Journal of Economic Literature, 47 No. (2), 448-474.
Curtis, C., Lugauer, S., & Mark, N. (2017). Demographics and aggregate household saving in Japan, China and India. Journal of Macroeconomics,51, 175-191.
Demery, D., & Duck, N. W. (2006). Savings – Age profiles in the United Kingdom. Journal of Population Economics, 19, 521-541.
Dey, I. (1993). Qualitative data analysis: A user-friendly guide for social scientists. London: Routledge.
Diener, E., Wirtz, D., Tov, W., Kim-Prieto, C., Choi, D., Oishi, S., & Biswas-Diener, R. (2010). New well-being measures: Short scales to assess flourishing and positive and negative feelings. Social Indicators Research, 97, 143-156.
Douthitt, R.A., & Fedyk, J. M. (1989). The use of saving as a family resource management strategy to meet childrearing costs. Lifestyles: Family and economic issue, 10(3), 233-248.
Feldman, D. C., & Beehr, T. A. (2011). A three-phase model of retirement decision making. American Psychologist, 66(3), 193-203.
Fenta, H. M., Dessie, Z. G., Mitku, A. A., & Muluneh, E. K. (2017). Saving habits and its determinants in Ambara national regional state, Ethiopia. Oman Chapter of Arabian Journal of Business and Management Review, 34(82), 1-10.
Furnham, A. (1999). The saving and spending habits of young people. Journal of Economic Psychology, 20, 677-697.
Garrison, S. T., & Gutter, M. S. (2010). Gender differences in financial socialisation and willingness to take financial risks. Journal of Financial Counselling and Planning, 21(2), 60-72.
Goldstein, D. G., Johnson, E. J., & Sharpe, W. F. (2008). Choosing outcomes versus choosing products: Consumer-focused retirement investment advice. Journal of Consumer Research, 35(3), 440-456.
Gottschalck, A. O. (2008). Net worth and the assets of households: 2002. Current Population Reports, 70-115.
Guariglia, A. (2001). Saving behaviour and earnings uncertainty: Evidence from the British household panel survey. Family, Household and Work Book Series, 135-150.
Gutter, M. S., Fox, J. J., & Montalto, C. P. (1999). Racial differences in investor decision making. Financial Services Review, 8(3), 149-162.
Hira, T. (1987). Households’ financial management factors influencing solvency and satisfaction. The Journal of Japan Society of Household Economics, 10, 199-210.
Hira, T. K., Sabri, M. F., & Loibl, C. (2013). Financial socialisation’s impact on investment orientation and household net worth. International Journal of Consumer Studies, 37(1), 29-35.
Howell, R. T., Kurai, M. Yin, W., & Tam, L. (2013). Money buys financial security and psychological need satisfaction: Testing need theory in affluence. International Journal of Humanities and Social Science, 4(12), 110-117.
Huston, S. J. (2010). Measuring financial literacy. The Journal of Consumer Affairs, 44(2), 296-316.
Kimball, M. S. (1990). Precautionary saving in the small and in the large. Econometrica, 58(1), 53-73.
Kotlikoff, L. J. (1988). Intergenerational transfers and savings. Journal of Economic Perspectives, 2(2), 41-58.
Lee, S., Park, M., & Montalto, C. P. (2000). The effect of family life cycle and financial management practices on household saving patterns. Journal of Korean Home Economics Association English Edition, 1, 79-92.
Leon, A. K., & Pfeifer, C. (2017). Religious activity, risk-taking preferences and financial behaviour: Empirical evidence from German survey data. Journal of Behavioural and Experimental Economics, 69, 99-107.
Liberda, B., & Tokarski, T. (1999). Determinants of saving and economic growth in Poland in comparison to the OECD countries. Working Papers Series, 1-28.
Ling, H. K., & Wong, S. K. (2012). High cost of living and social safety nets in urban Sarawak (1st ed.). Institute of Southeast Asian Studies.
Livingstone, S. M., & Lunt, P. K. (1993). Savers and borrowers: Strategies of personal financial management. Human Relations, 46(8), 963-985.
Loke, Y. J. (2014). Living beyond one’s means: Evidence from Malaysia. International Journal of Social Economics, 43(1), 2-18.
Love, D. A. (2010). The effect of marital status and children on savings and portfolio choice. The Review of Financial Studies, 23(1), 385-432.
Malaysian Digest. (2016). Retirement homes: The Way Forward to Adapt to Malaysia's Ageing Population.
McCracken, G. D. (1998). The Long Interview. Qualitative Research Methods (Vol. 13). Newbury Park: SAGE.
Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook. SAGE
Ngui, N. (2016). Malaysian are borrowing too much, not saving enough. The Star. http://www.thestar.com.my/business/businessnews/2016/08/30/khazanahmalaysians-borrowing-too-much/
Pollak, R. (1970). Habit Formation and Dynamic Demand. Journal of Political Economy, 78(4), 745-763.
Quick, H. E., & Moen, P. (1998). Gender, employment and retirement quality: A life course approach to the differential experiences of men and women. Journal of Occupational Health Psychology, 3(1), 44-64.
Rahman, N. A. A., Kosim, Z., & Siew, G. Y. (2016). Household indebtness in Malaysia: A survey evidence international. Journal of Trade, Economics and Finance, 7(4), 102-104.
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. The Journal of Consumer Affairs, 44(2), 276-294.
Shagar, L. K. (2016). Malaysians not saving enough for retirement. The Star. http://www.thestar.com.my/news/nation/2016/05/04/malaysians-not-savingenough-for-retirement
Shanmugam, A., & Abidin, F. Z. (2013). Retirement confidence and preparedness: A study among working adults in a northern state in Malaysia. Business Management Research Paper, 404-414.
Shukry, A. (2014). With zero savings, most Malaysian may face dire straits. The Edge Financial Daily. http://www.theedgemarkets.com/article/zero-savings-most-malaysians-may-face-dire-straits
Sonuga-Barke, E., & Webley, P. (1993). Children’s saving: Study in the development of economic behaviour. Hove:CEA.
Spinnewijn, J. (2015). Unemployed but optimistic: Optimal insurance design with biased beliefs. Journal of the European Economic Association, 13(1), 130-167.
Taylor, S., & Bogdan, R. (1998). Introduction to qualitative research methods: The search for meanings (3rd ed.). Hoboken, NJ; John Wiley & Sons.
Urbis, V. P., Rintol, D., Power, B., & Keevy, N. (2008). Young people (12-17 years) and financial debt, commonwealth of Australia.
Venti, S., & Wise, D. (1998). The cause of wealth dispersion at retirement: Choice or chance? American Economic Review, 88(2), 185-191.
Wang, M. (2007). Profiling retirees in the retirement transition and adjustment process: Examining the longitudinal change patterns of retirees' psychological well-being. Journal of Applied Psychology, 92(2), 455-474.

In-Text Citation: (Adee et al., 2023)
To Cite this Article: Adee, S., Lau, E., & Wong, S. S.-L. (2023). Saving Habit for Retirement and Well-Being: A Qualitative Analysis. International Journal of Academic Research in Economics and Management and Sciences, 12(3), 39–55.